Russian Shale Beating U.S. Is ONGC’s Last Bet: Corporate India

Oil & Natural Gas Corp., India’s biggest energy explorer, is banking on the world’s largest shale oil reserves to save its Russian acquisition. Stumbling blocks include oil prices at a five-year low and U.S. sanctions.

Imperial Energy Corp., which the Indian state-run explorer bought in 2009 for 1.4 billion pounds ($2.1 billion), will drill four wells in Russia’s Bazhenov shale formation by July, seeking to find enough oil to start commercial production, said Narendra Kumar Verma, managing director of ONGC’s overseas unit, which owns Imperial. Failure would mean seeking options, including selling the unit, he said.